You can contact the broker to discuss their policy on non-dividend distributions. You may need to track them yourself. They should be able to manually adjust down the basis for the non-dividend distributions received. They will not be taxed until cost or other basis is completely recovered. Reduce cost or other basis by these distributions. If the taxpayer gets back all cost or other basis, report the excess distributions as capital gains.
The 1099 Series are informational reporting forms submitted to the IRS by third parties. The IRS then matches the form information to your tax return to insure all income is reported and taxed. If you do not include a 1099 received from a third party on your tax return, you will receive a notice from the IRS asking why. This is the CP2000 matching notice. If you receive this notice from the IRS, make sure and respond by the date indicate on the notice.
